Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Insights - The company reported a slight revenue decline of 1.0% year-on-year for 2024, with total revenue reaching 16.951 billion RMB. However, there was a significant recovery in the second half of 2024, with a 13.86% increase in revenue compared to the first half, driven by a rebound in workforce size and accelerated growth in cloud intelligence and full-stack AI businesses [1]. - The company achieved a gross margin of 22.1% for 2024, a decrease of 1.3 percentage points year-on-year, while adjusted profit increased by 3.8% to 650 million RMB. A dividend of 0.0533 HKD per share was proposed, reflecting a commitment to shareholder returns [1]. Summary by Sections Cloud Intelligence - The company is a leading player in the Huawei cloud ecosystem, generating 1.848 billion RMB in public cloud revenue, with a core business growth of 25% year-on-year. It has maintained the top market share for seven consecutive years and has implemented over 200 CTSP projects across various industries [2]. - Internationally, the company has made strides with projects like the Kai Tak Sports Park and the police CDIP project in Hong Kong, valued at 410 million HKD, establishing benchmarks for smart city initiatives [2]. Full-Stack AI Transformation - Since initiating the SP301 strategy in 2020, the company has invested over 1.5 billion RMB in developing a comprehensive "cloud-edge-end full-stack AI" framework, achieving initial success by 2024 [3]. - The company has established a digital power innovation center and a computing power scheduling platform, winning over 90 major model projects. It has also deployed over 30 lighthouse projects in sectors such as finance and energy [3]. - A proprietary ERP system has been developed and successfully delivered to a state-owned power enterprise [3]. HarmonyOS Ecosystem - The KaihongOS has received national EAL5+ security certification, with a response time of less than 3 microseconds, and has adapted to 80 chip models, contributing over 4.25 million lines of open-source code [4]. - The company leads the market in HarmonyOS PC and application migration services, with over 7,000 services launched in 2024, covering more than 500 application migrations [4]. Profit Forecast, Valuation, and Rating - The company is expected to see a recovery in its core business and efficiency improvements from AI initiatives, with a projected revenue rebound in 2025 [5]. - The focus will remain on high-value sectors such as power, finance, and government, with increased investments in cloud, HarmonyOS, and ERP areas [5]. - The net profit forecasts for 2025 and 2026 have been adjusted downwards to 644 million RMB and 754 million RMB, respectively, while a new forecast for 2027 is set at 870 million RMB [5].
中国软件国际（00354）：2024年度业绩点评：全栈AI崛起驱动转型，云鸿协同夯实长期价值